Profit Margin Calculator

Calculate profit, profit margin, and markup from cost and selling price.

See the difference between margin and markup using a product or transaction’s cost and revenue.

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Cost and revenue

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Complete the fields and calculate to see a detailed result.

Understanding margin and markup

Profit is revenue minus cost. Margin expresses profit as a share of revenue; markup expresses it as a share of cost.

Formula and methodology

Profit = revenue − cost. Margin = profit ÷ revenue × 100. Markup = profit ÷ cost × 100. Both inputs must exceed zero.

Worked example

A $60 item sold for $100 makes $40 profit, a 40% margin, and a 66.67% markup. The percentages differ because their denominators differ.

Assumptions and limitations

Include all costs relevant to the decision, such as materials, freight, fees, or labor. This transaction-level result is not automatically the same as company gross or net margin.

Frequently asked questions

Is margin the same as markup?

No. Margin divides profit by revenue; markup divides by cost.

Can results be negative?

Yes. Revenue below cost produces a loss.

Which costs should I include?

Include relevant costs consistently for the pricing decision.

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